Wednesday, 19 February 2020

OJK Sets New Rule to Prevent More Cases like Jiwasraya, Asabri

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Laila Afifa

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  • Financial Service Authority (OJK) press conference, Tuesday, April 16, 2019. TEMPO/Dias Prasongko

    Financial Service Authority (OJK) press conference, Tuesday, April 16, 2019. TEMPO/Dias Prasongko

    TEMPO.CO, Jakarta - The Financial Services Authority (OJK) revised the rule on the insurance industry following the defaults of Jiwasraya and Asabri. The OJK released regulation No.43/2019 on the amendment of regulation No.73/2016 that governed good corporate management in insurance firms. 

    OJK's non-bank division official Ariastiadi said that the new rule mandates all insurance to have directors of compliance.

    The rule stipulates that an insurance firm's position for a director of compliance cannot be assumed by directors leading the technical, financial, and or marketing divisions.

    "The director must have an independent division that does not relate to business and operational function. If the director has two divisions to lead, it may create conflicts," Astriadi said in Jakarta on Thursday, February 13. 

    As of today, only 25 of 130 insurance companies in Indonesia have compliance directors in their structure.  

    Eko Wahyudi